28 February, 2012
CINCINNATI, OH, U.S.A.– Supply Dynamics (www.supplydynamics.com) announces that it has been hired by a major aerospace Original Equipment Manufacturer (OEM) to perform a Gap Analysis on the OEM’s well-established internal aggregation processes and tools. The overall objective of the program is to identify where the existing raw material sourcing process can be enhanced, replaced or extended in a cost-effective and minimally disruptive manner. The scope of this program includes analysis of both processes and IT solutions. The project, carried out during two, week-long, on-site visits will address the steps necessary to restore visibility into the Material-Inputs where that visibility does not exist, thereby enabling the OEM to:
- Consolidate and negotiate competitive price and service levels for common material Input requirements.
- Ensure continuity of supply.
- Monitor and enforce Part Manufacturer, Distributor and Mill/Manufacturer participation and compliance with the terms of a consolidated raw material purchasing program.
- Standardize raw material sizes, specifications and forms used in the OEMs extended Supply Chain.
Some of the areas evaluated include:
- Spend Categories Targeted for Aggregation
- Data Sources, Formats and Attributes
- Key Aggregation Processes
- Bill-of–Material Identification
- Purchasing Requirements vs. Engineering Requirements
- Calculation of Material Forecasts
- Aggregation Order Administration
- Updating the Raw Material Forecast to accommodate the addition of New Parts
- Incorporating New Part Suppliers into the Aggregation Program
- Accommodating Scenarios Where a Part Supplier Outsources Parts to Another Supplier (Tier 2, 3, etc.)
- Monitoring and Enforcement:
- Buying at or inside of lead-time
- Distributor and Mill Negotiations
- IT Changes and Support
- Purchase Order Work Flow
- Rate Readiness
Results of the Gap Analysis will be used to improve existing processes and potentially supplement or extend current capabilities. Supply Dynamics was selected to perform the Gap Analysis because of its track record for successfully helping OEMs aggregate raw materials in a number of different industries.
Supply Dynamics’ suite of web-based tools allow customers to instantly forecast raw material requirements and monitor the timely order and supply of raw materials across an OEM’s extended supply chain. This enables an OEM and its supply partners to know that materials being produced, ordered and delivered are synchronized with actual OEM finished part demand. It also allows the OEM to measure on-time delivery of raw materials to production sites and outside part manufacturers, to standardize materials and to identify users for surplus, excess and obsolete materials. Supply Dynamics’ OASIS solution ensures that information is received when and where it is needed, which dramatically improves decisions by eliminating much of the speculation that characterizes the raw material supply chain today.
Trevor Stansbury, President of Supply Dynamics stated, “This is a real honor for Supply Dynamics. It is great to be recognized as a thought-leader in the field of “extended enterprise” and more particularly, demand aggregation. We are confident that our efforts will make a huge difference for this customer.”
About Supply Dynamics: Supply Dynamics is the leading provider of material consolidation solutions known as “Material Demand Aggregation.” Located in Cincinnati, Ohio, Supply Dynamics utilizes proprietary processes and IT solutions to provide OEM customers with real-time visibility and control over the materials that go into their finished parts – especially the materials that go into the parts made by their Tier 1 and Tier 2 outside part suppliers. Provided in a hosted “software as a service” model, the Supply Dynamics multi-enterprise platform exchanges critical-to-quality data with virtually any number of legacy MRP/ERP systems, providing customers with a single, unified view of how finished part materials are impacting their business. Supply Dynamics’ suite of web-based tools and reports allow customers to instantly forecast and negotiate common materials and monitor the timely order and supply of materials across their extended supply chain. This enables an OEM and its supply partners to know that materials being produced, ordered and delivered are synchronized with actual finished part demand. It also allows the OEM to measure on-time delivery of raw materials to production sites and outside part manufacturers, to standardize materials and to identify users for surplus, excess and obsolete materials. Material Demand Aggregation is applicable to numerous industries providing a means for OEMs to coordinate the actions of each link in the supply chain to dramatically improve efficiency and predictability of supply. (www.supplydynamics.com)
For more information, please contact Mr. Bob Hales, Director of Market Development at (513) 965-2000